Correlation Between Hamilton Lane and Brightsphere Investment
Can any of the company-specific risk be diversified away by investing in both Hamilton Lane and Brightsphere Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hamilton Lane and Brightsphere Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hamilton Lane and Brightsphere Investment Group, you can compare the effects of market volatilities on Hamilton Lane and Brightsphere Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hamilton Lane with a short position of Brightsphere Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hamilton Lane and Brightsphere Investment.
Diversification Opportunities for Hamilton Lane and Brightsphere Investment
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hamilton and Brightsphere is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hamilton Lane and Brightsphere Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brightsphere Investment and Hamilton Lane is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hamilton Lane are associated (or correlated) with Brightsphere Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brightsphere Investment has no effect on the direction of Hamilton Lane i.e., Hamilton Lane and Brightsphere Investment go up and down completely randomly.
Pair Corralation between Hamilton Lane and Brightsphere Investment
Given the investment horizon of 90 days Hamilton Lane is expected to generate 1.54 times less return on investment than Brightsphere Investment. In addition to that, Hamilton Lane is 1.13 times more volatile than Brightsphere Investment Group. It trades about 0.26 of its total potential returns per unit of risk. Brightsphere Investment Group is currently generating about 0.45 per unit of volatility. If you would invest 2,563 in Brightsphere Investment Group on August 24, 2024 and sell it today you would earn a total of 536.00 from holding Brightsphere Investment Group or generate 20.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hamilton Lane vs. Brightsphere Investment Group
Performance |
| Timeline |
| Hamilton Lane |
| Brightsphere Investment |
Hamilton Lane and Brightsphere Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hamilton Lane and Brightsphere Investment
The main advantage of trading using opposite Hamilton Lane and Brightsphere Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hamilton Lane position performs unexpectedly, Brightsphere Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brightsphere Investment will offset losses from the drop in Brightsphere Investment's long position.| Hamilton Lane vs. Brightsphere Investment Group | Hamilton Lane vs. Noah Holdings | Hamilton Lane vs. Alvarium Tiedemann Holdings | Hamilton Lane vs. Blackrock Muniyield |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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